Protected Trust Deed (TD) Scottish Residents Only

What is a Protected Trust Deed?

A Protected Trust Deed, which is overseen by the Accountant in Bankruptcy, is similar to an IVA but is only available to residents of Scotland.

Click here for full information from the Accountancy in Bankruptcy.

Any person who wants to make an application for a Protected Trust Deed must have been a resident of Scotland for at least six months before making an application.

It’s a voluntary and formal agreement between you and your creditors in which you agree to give a contribution from your income for a specified period. This is usually four years.

Like an IVA, you’ll usually need circa £6,000 of unsecured debt from two or more lenders to qualify.

Not all debts will qualify for repayment under a Protected Trust Deed, but it will always factor all debts into your overall assessment to ensure every debt is managed.

A Protected Trust Deed provides people with a way of dealing with debt problems as the debtor is protected from the legal enforcement of debts that are included in the trust deed. This is only applicable once it has become protected though, and will not reverse any action that has been taken prior to the start date.

For many debtors in Scotland, Protected Trust Deeds are a viable option as they allow people to keep their homes. The equity does normally have to be released via third party buy outs or through remortgaging, but only in extreme cases will this be achieved through the sale of the debtor’s home.

In order for someone to enter into a Protected Trust Deed, they must:
  • Be a full-time resident of Scotland – or have been so for at least six months
  • Consult the services of an Insolvency Practitioner who will require access to a person’s financial details and income to debt ratio such as mortgage, council tax, utility bills and all other outgoings.
There are certain obligations for people once they have entered into a Protected Trust Deed. These include:
  • Full cooperation with the trustee
  • Paying the monthly contribution as agreed and on time
  • Not entering into additional credit agreements
  • Advising the trustee of any unexpected windfalls or payments that mean the person’s financial circumstances change
Finally, let’s look at a few Benefits and Considerations for Protected Trust Deeds:


Things to consider

One affordable monthly payment Your information will be added to the Insolvency Register
All creditor contact will cease and be handled by your Insolvency Practitioner If you are a homeowner and have equity in your property, you may be required to release some to your creditors
All charges and interest frozen Applying for credit cards, loans, mortgages, or other unsecured debts will be affected for the duration of your repayment
You keep control and possession of your personal assets (property, car etc.) A Trust Deed will show on your credit file for 6 years
You receive full legal protection from any further creditor action


Failure to comply may result in bankruptcy
Fixed term —you’ll have a set date when your debts will be cleared Your expenditure will be monitored and you may be asked to reduce expenses that are considered excessive
If your situation worsens, payment breaks can be provided, or the IVA may be altered to suit your new circumstances
Debt remaining at the end of the fixed term will be written off

Get in touch with us

No one should have to deal with financial troubles alone. Whether you’re looking to resolve your financial struggle once and for all or just want to ease the burden by talking things through, we can offer you information and assistance on how best to proceed. Get in touch today to take the first step towards a better financial future. See if you qualify.